Budget 2017 - The last Spring Budget? | Wright Vigar

Budget 2017 – The last Spring Budget?

 In News, Treasury Updates

The last Spring budget?

Mr Hammond opened his budget speech by declaring that his “last Spring budget” was not the first! Apparently Norman Lamont presented the first “last Spring Budget” 24 years ago.  However the tax landscape has changed greatly since then and the system of announcing intentions, running consultations and only then introducing legislation, appears to be one that is here to stay. There may not have been many new announcements in this budget, but April 2017 will still see the start of many changes which have been announced previously.  Here are just a few:

  • The income tax and employer NIC advantages of using a salary sacrifice arrangement for benefits in kind will be removed for new arrangements
  • Non-contractual payments in lieu of notice (as well as contractual ones) will be taxable as earnings
  • The substantial shareholding exemption will be simplified ensuring relief for qualifying institutional investors
  • New flexibility will be available for corporate losses made from 1 April 2017 onwards
  • A restriction on the offset of corporate losses against profits above £5 million will be introduced
  • A limit will be imposed on corporate interest relief above £2 million
  • The annual allowance for contributions to a money purchase pension by someone who has flexibly accessed their pension savings will be restricted to £4,000
  • All profits from dealing in or developing land in the UK, irrespective of the residence of the person making the disposal will come within the charge to UK tax


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